broker info kit. - itoolpro · cmls 28545 aveo broker kit jan 16.indd author: ilham karrar created...

aspire to own

aspire to own

broker info kit.

aspire to own

P R O D U C T F E A T U R E S

Aveo makes home ownership accessible to more Canadians.

Purpose Standard purchase and refinance (no transfers, second mortgages, pre-approvals)

Property Type • Owner occupied • Located in selected Urban & Business Centres in Ontario, Manitoba, Alberta and British Columbia –

refer to your Underwriter • Prime residential real estate with demonstrated ongoing re-sale demand. Property must have a

remaining economic life > requested amortization + 5 years

Term 1, 2 and 3 year closed

Rate • Fixed • Rate hold is 10 days from date of approval (60 days from date of approval with signed commitment)

Loan Amount • $100,000 to $500,000 • Up to $750,000 in the GTA, GVA, Winnipeg, Calgary, Lethbridge, Edmonton • Loans greater than $750,000 may be available on case-by-case basis • Geographic and credit restrictions apply

Down Payment • Must be non-borrowed funds on deposit with a recognized Canadian financial institution

Maximum LTV • Fully Qualified Income – max 80% LTV • BFS or Commissioned sales with alternative sources of proven income – max 80% LTV. Any income

confirmation that is not acceptable will be subject to 65% LTV maximum. • BFS Stated Income (with no alternative sources of proven income) – max 65% LTV • LTV includes 1% application fee

Amortization 25 years; up to 30 years available at Underwriter’s discretion

GDS/TDS • 45%/50%

Payment Options Monthly, semi-monthly, bi-weekly, weekly (accelerated)

20% Prepayment Privilege Annual lump sum up to 20% of the original principal amount (min $500). Unused portion cannot be carried forward. Not available on 1 year term.

Prepayment Penalty Early payout amounts are based on which year of the mortgage the customer is in. • Year 1 = 3% x principal amount being prepaid • Year 2 = 2% x principal amount being prepaid • Year 3 = 1% x principal amount being prepaid

Credit History • 550 minimum Beacon Score – up to 80% LTV • <550 Beacon Score for a co-applicant (income excluded, debts included) – up to 80% LTV if primary

applicant has a beacon score >550 • Reject Beacon Score (no credit) - considered on case-by-case basis supported by bank records

demonstrating chequing and savings habits • Bankruptcy discharged for a minimum of 1 year (if less than 1 year, refer to your Underwriter or

Regional Manager) • Consumer proposal must be paid out in full prior to advance (for purchases) and from proceeds (for

refinances)

Income • Fully Qualified Income (max 80% LTV); standard documentation will be required for confirmation of employment and income as submitted

• BFS or Commissioned sales with alternative sources of proven income (max 80% LTV); 1) proof of business ownership, 2) NOA or Letter from CA confirming no outstanding income taxes 3) Alternative proof of income via bank statements and third party documentation

• BFS Stated Income (max 65% LTV); documentation will be required to support the existence of a business and no outstanding income taxes

Other • Solicitor and Appraiser subject to CMLS Financial approval

Property Taxes Taxes are collected by CMLS Financial and paid on borrower’s behalf.

Finder’s Fees • 1 year term: 50 bps • 2 year term: 60 bps • 3 year term: 75 bps

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aspire to own

V05122016

Product Details

Purpose Standard purchase and refinance (no transfers, second mortgages, pre-approvals)

Loan Amount • $100,000 to $500,000 • Up to $750,000 in the GTA, GVA, Winnipeg, Calgary, Lethbridge, Edmonton • Loans greater than $750,000 may be available on case-by-case basis

• Geographic and credit restrictions apply – minimum population 50,000

Term • 1, 2 and 3 year closed

Rate • Fixed

• Rate hold is 10 days from date of approval (60 days from date of approval with signed commitment)

Down Payment • Min. 25% (5% must be own resources)

Property Type • Single family, duplex, fourplex, townhouse, apartment condo • Property must be registered in personal name • No co-ops, rental pools, timeshares, fractional ownership, or draw mortgages • Full appraisals required – refer to approved appraiser list or Solidifi (solidifi.com, 1.866.583.3983)

Maximum LTV Purchase/Refinance:

• Fully Qualified Income – Max 75% LTV • BFS or Commissioned sales with alternative sources of proven income – Max 75% LTV • BFS Stated Income – Max 65% LTV • LTV includes 1% application fee

Credit • Fully Qualified Income - Min. 600 beacon

• BFS or Commissioned sales with alternative sources of proven income – Min. 600 beacon

• BFS Stated Income - Min. 680 beacon

• Min. personal net worth of $50,000

• Discharged bankruptcy

Amortization • 25 years

GDS/TDS • 45%/50%

Payment Options Monthly, semi-monthly, bi-weekly, weekly (accelerated)

20% Prepayment Privilege Annual lump sum up to 20% of the original principal amount (min $500). Unused portion cannot be carried forward. Not available on 1 year term.

Prepayment Penalty Early payout amounts are based on which year of the mortgage the customer is in. • Year 1 = 3% x principal amount being prepaid • Year 2 = 2% x principal amount being prepaid

• Year 3 = 1% x principal amount being prepaid

Income • Fully Qualified Income (max 75% LTV); standard documentation will be required for confirmation of employment and income as submitted

• BFS or Commissioned sales with alternative sources of proven income (max 75% LTV); 1) proof of business ownership, 2) NOA or Letter from CA confirming no outstanding income taxes 3) Alternative proof of income via bank statements and third party documentation

• BFS Stated Income (max 65% LTV); documentation will be required to support the existence of a business

and no outstanding income taxes

Documentation • Title insurance mandatory for all applications • Assignment of rents registered on title • T1 general or market rents (lease agreements not acceptable) • Net rental calculation

Finders Fees • 1 year term: 50 bps • 2 year term: 60 bps

• 3 year term: 75 bps

RENTAL PROPERTY

Aveo makes home ownership accessible to more Canadians.

A V E O L E N D I N G Q T E N

QTEN

How viable is your deal?

We developed Aveo to be accessible to a wide range of clients. If you have a deal you would like us to finance, but are not sure whether your client qualifies, please call your Underwriter to help you assess the viability of the deal.

Lending Areas* Financing is available in the

following Urban Centres:

Ontario

1 Toronto GTA/CMA 2 Ottawa CMA 3 Hamilton CMA 4 Kitchener-Waterloo CMA 5 Barrie Manitoba 1 Winnipeg Alberta

1 Calgary 2 Lethbridge 3 Edmonton British Columbia

1 Metro Vancouver 2 Victoria 3 Fraser Valley 4 Kelowna 5 Kamloops 6 Prince George

*Lending areas are listed for Urban Centres only; for additional information on our lending areas please contact your Underwriter.

QTEN pricing criteria Here is what we will need to know in

order to set pricing:

1 What is the client’s credit score? 2 Has the client filed for Bankruptcy or Consumer Proposal? 3 Does the client have significant unpaid collections? 4 What type of income verification can the client provide? 5 How long has your client been with their employer? 6 What is the property type? 7 What is the LTV? 8 What is the property being used for? 9 What is the loan purpose? Purchase or refinance? 10 What is the loan amount?

Once we have the answers to the QTEN, we’ll be able to rapidly assess viability.